Sources of Productivity Growth in Cereals Cultivation in Selected Provinces in Iran: Improving Farm Management or Technological Progress?

Document Type : Research Paper

Authors

• Behrooz Hassanpour ¹
• Aiatollah Karami ²

¹ Assistant Professor, Economic, Social and Extension Research Department, Fars Agricultural and Natural Resources Research and Education Center, Shiraz, Iran.

² Associate Professor, Rural Development Management Department, Faculty of Agriculture, Yasouj University, Yasouj, Iran.

10.30495/jae.2022.25024.2170

Abstract

Abstract
Introduction: Productivity is an inexhaustible source of economic growth. Cereal, including wheat, barley, rice and corn, because of its important position in production and consumption, are the most important agricultural products in Iran. In this study, by measuring the average total factors productivity (TFP) growth and its components, the situation of farm management and technological progress in cereal farms of the southwest provinces of the country was analyzed.
Materials and Methods: The data envelopment analysis (DEA) method was used to calculate the total factors productivity (TFP) and analyze its constituent components (technical efficiency growth and technological changes). Through the Ministry of Agriculture, yield and production costs of cereal products including wheat, barley, rice and corn as panel data for seven southwestern provinces, during a 12-year period (2003-2014), were extracted and analyzed.
Findings: In most provinces, the main source of TFP growth in irrigated wheat farms is due to technological progress, and in terms of efficiency or farm management, the recession is prevalent. Regarding rain-fed wheat, positive changes in technology and efficiency were observed simultaneously only in Esfahan, Ilam, Chaharmahal Bakhtiari and Kohgiluyeh provinces, and in the case of rain-fed barley in Fars, Kohgiluyeh and Ilam. The limitation of TFP growth in corn is mainly due to poor farm management and, conversely, to rice due to the stagnation of technology.
Conclusion: The decomposition of TFP growth into its components showed different results in each province and each product. Therefore, in some provinces, in the case of irrigated wheat and corn, due to the lack of technical efficiency, educational and extension programs and improving farm management are a priority. While for paddy fields, due to the technology recession, the development of mechanization and technology is a priority.

Keywords

• Cereals
• DEA
• Efficiency growth
• Technological progress
• TFP growth

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